Apple Working on iPhone Nano, Smaller & More Affordable

According to news, Apple is working on a lower-end iPhone that is both smaller and cheaper than the current line up. It is said to be one-third smaller than the iPhone 4, but I can only hope that the screen dimension doesn’t shrink proportionally. A 2.3″ screen running on iOS is as uninteresting as it sounds.

Imaginary iPhone Nano & iPhone Shuffle dated in 2007, courtesy of iA.

The new iPhone Nano, as everyone dubs it, will be going for $200 without contract.
It is understandable why Apple is willing to work on a lower end iPhone instead of maintaining its luxury or premium status, considering how quickly its arch rival, Android, is dominating the mid and low-end market.
Apple has done this before with its iPod line up with the iPod Shuffle, blowing the rest of low-end MP3 players out of water even without a screen (when everyone else has one).
The iPhone already has a strong branding across the globe, and I can imagine those who have longed for an iPhone but can hardly afford would welcome this new addition to the iPhone family.
Until there is an official announcement for Apple however, it’s best to take this news with a grain of salt. The iPhone Nano rumor has been going in both 2007 and 2008. It’s 2011 and there’s still no sight of a tinier iPhone.